Industrials
The unassuming ESG powerhouse that will likely double - spun off from Danaher in Oct 23, VLTO is a global leader in essential technologies dedicated to safeguarding the world's vital resources. With c.55% of its income coming from recurring sources and its favourable margins, the business is in a strong position to capitalise on its leadership in sectors with high growth potential in a very unstructured industry. A promising candidate for long-term growth and a potential future separation (spinoff) of its 2 divisions could see the stock price double within the next 2 years.
Edition: 181
- 08 March, 2024
Building an all-weather environmental strategy
Rising interest rates were detrimental to renewable energy stocks in 2023, underscoring that using solely renewable energy plays as short hand for climate change investing is myopic and risky. The consequences of climate change go far beyond a low-carbon energy transition and the associated investment opportunities (and risks) are equally numerous and varied; building an environmental portfolio requires careful consideration of the macro backdrop. In the current macro context, the Sustainable Market Strategies team find US plays particularly compelling. Newly listed Veralto Corp, Owens Corning and Weyerhaeuser are three companies that should do well next year and are tackling three distinct environmental problems.
Edition: 175
- 08 December, 2023
Healthcare
One of eight global companies in October performing a Spinoff, splitting into two listed entities. Spearheaded by the Rales brothers who have a history of wealth creation, DHR will Spinoff Veralto (VLTO), a pure-play water infrastructure company, on October 2. This will be DHR’s sixth carve-out and its third Spinoff. For insights and opportunities, reach out to the Edge Group ahead of the break-up!
Edition: 168
- 01 September, 2023